Credit Constraints And Generational Welfare Over The Great Recession
The Great Recession of 2007-2009 has been one of the largest contractions in the United States since the Great Depression. However, the recession has not impacted all agents equally. Some have lost not only their jobs but also their homes, while others have made fortunes purchasing assets at depressed values. The question that is asked in this paper is what are the impacts of the recession on different generations? A careful analysis of both the data and modeling simulations suggest that younger generations suffered the largest welfare losses.